Barry Gitarts

Amaranth: Tip of the Iceberg

This post is just arm-chair economics and only take one false assumption to collapse the dominos of this argument. BTW, your so bearish on the brokers because of this hedge fund liquidation, but you overlook the fact that prime brokering a major component of their business and in order to meet margin calls they have to sell every $1.5B in assets for about $1B in cash to the prime brokers. That means the prime brokers on $6b are going to make about $2B in profits of this liquidation.